Smart packaging market projected to grow to US$2.6 billion

The role of packaging has evolved over time, going from simply protecting and identifying products to driving sales via enticing graphics. The latest iteration is smart packaging, which utilises technology including sensors, indicators and wireless communication to enhance user engagement, product quality and supply chain efficiency. IDTechEx forecasts that establishing business models that utilise these technologies could grow the smart packaging market to US$2.6 billion by 2033. This covers just electronics hardware — the smart packaging market value will be higher if infrastructure, software and services are included.

IDTechEx’s ‘Smart Packaging 2023–2033’ report provides market research and intelligence on emerging technologies, with an in-depth technology and market evaluation of this emerging industry. Drawing on 24 interviews with industry players, it discusses the needs of end users, evaluates multiple applications, assesses the underlying technologies such as NFC/RFID and printed/flexible sensors, and presents many case studies of smart packaging deployments.

There are several drivers in the smart packaging market. Growth in e-commerce is raising the demand for general packaging and changing the priorities of packaging design, including more emphasis on sustainability and delivery optimisation. Stores are increasingly serving fulfilment centre functions and the need for streamlined inventory management is driving the adoption of item-level smart labelling.

COVID-19 has also been a factor in accelerating the adoption of wireless ID, including the use of QR codes for tracking and NFC for wireless payment. Consumers have adopted these technologies, triggering many businesses to investigate smart packaging. The result has significantly driven the connected experience forward, with brands using QR codes and NFC to interact with consumers.

Smart packing comprises a range of current and emerging technologies, often with very different purposes. These include:

• RFID for wireless item identification, as well as other identification technologies, including QR codes and capacitive ink approaches.
• Electronic article surveillance (EAS) for anti-theft.
• Data loggers for temperature, shock, vibration and time/location monitoring.
• Interactive smart packaging, including light-up and measuring.
• Printed, flexible and organic electronics, including displays, sensors and batteries.
• Chemical indicators: temperature, frozen chemical visual indicators and active packaging for produce and pharmaceutical monitoring.

Image credit: iStock.com/Blue Planet Studio

Originally published here.